Abstract
This paper explores the effects of market structure on the effectiveness of loyaltyprogrammes. A literature review led to the proposition that effectiveness isdependent upon firms’ existing customer information deficit and their ability tosegment markets with differentiated products. A case study examines two sectorswith differing market characteristics: civil aviation and car ferries. Loyalty programmesappeared to be less successful in the latter, where information aboutcustomers was more readily available than for airlines. Opportunities for segmentationwere less. Although questions are raised about how the effectiveness of a loyaltyprogramme can be measured, the proposition that market characteristics caninfluence the effectiveness of a loyalty programme is accepted.KEYWORDS: Loyalty; market structure; segmentation; effectiveness; civil aviation; passengerferries
| Original language | English |
|---|---|
| Pages (from-to) | 47-66 |
| Journal | Journal of Strategic Marketing |
| Volume | 8 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published (in print/issue) - 2000 |
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